Value for money: Does the price and value of the property match?
When buying a property, there are many Important factors that one can classify as a layman only conditionally. Developers try to present these as simple and manageable as possible, and yet each object is different and should be evaluated as well. In many places there is a discrepancy between the actual property value and the price that ultimately has to be paid. In large cities such as Munich, Hamburg or Frankfurt am Main, the factor & ldquo; location & ldquo; an immense value. The free construction areas are scarce, the demand especially for one- and two-person households large. And the smaller the living space, the higher (relative) is the corresponding price per square meter. Of course, this can not be 1: 1 to other areas and forms of living reflect and so quickly creates confusion about what "value".
When is the right time to buy?
Currently, the German real estate market is characterized by a steady demand, the metropolises and larger cities have some double-digit growth rates. And as the ongoing low-interest-rate phase means that there is a lot of money in the market, high rates are also paid for simple properties. What counts is the very fact of being there and benefiting from future value gains. The right time to buy a property is so chosen, if you have little buying pressure and can compare the offers in peace. This is possible in rural areas or on the outskirts of many cities, where there are only in exceptional cases larger capers up or down. Try to settle on an area or a quarter and watch the offers over a period of time.
Here you should not only look for Internet portals, but also advertisements in the daily newspaper or at local brokerage offices. This also gives you an idea of how quickly an object actually changes hands and which types of property are increasingly in demand. So it's easier to see if surcharges are justified based on location, features, or architecture.
All purchase prices you receive in this process are initially bid prices. In reality, these are negotiated and they do not represent the actual object value. Discounts of ten or more percent are not uncommon, especially in rural areas. On the other hand, several interested parties of popular properties in the metropolises can also be sold via a bidding process. In this case, surcharges are also possible.
What makes a good location?
The location plays a role in real estate purchases, not necessarily in case of own use. But here, too, the object is supposed to represent a certain value, which is not so much about the equipment, but is influenced by the situation. Important factors are the transport links, the range of rest and recreational areas and the variety of local amenities and educational facilities. The communities issue land value cards, which you can purchase for a fee. Here you can easily see the differences between the different parts of the city. And, for example, where there are opportunities to build space-intensive constructions like a bungalow.
Direct neighborhood is a core criterion here, because ultimately their sales values can also be used to draw conclusions about the value of their own property and the property itself.
The more mixed a quarter is and the more transactions take place, the sooner these values can be mapped onto one's own property. If something is rarely sold, the value achieved can quickly be misleading. For comparable objects, you must definitely include the state of preservation and possible modernizations.
You can work with the object value
Even the best property can not properly value a neglected, dilapidated property. And with many objects, the second or third glance reveals just how high the intrinsic value actually is. So there are many areas threatened by flooding, in which many protective measures are necessary and thus influence the value of the house. On the other hand, latent moisture damage can also attack the masonry if the house is in a high groundwater level. On the part of the state there are usually also conditions.
Inform yourself at the official offices, how much influence you yourself can take on the design and architecture of the house. Sometimes there are restrictions, additions or modernizations are not possible as desired. And then something possibly reduces the value and thus the purchase price, which is willing to pay an interested party. The same applies to the purchase of a condominium, because with it you become part of a community of owners. Sometimes you have little influence on what may be designed in the common areas. Nevertheless, you have to pay the costs proportionately. Therefore request all relevant documents from the previous owner and, if necessary, have them checked by an experienced lawyer.
The specific factor for the value of a property is first of all the location. How good is the public transport connection, which public facilities are there and what does the place offer to local supply? Especially with older structures, there are massive differences in the state of preservation, modernizations can massively influence the value. In addition, when purchasing a condominium, the respective decisions of the owners' meeting must be observed.
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